How to open your first CFD trade

Remember:You can set Stop Loss and Take Profit limits so your deal will close automatically once it reaches specific price levels.

What is a CFD

CFD stands for Contract For Difference. When you trade CFDs, you are essentially investing in the price of a specific instrument, without having to actually buy or store it. What is a single contract? It depends on the instrument.

CFD type

1 contract

Oil

The price of 1 oil barrel

Gold

The price of 1 ounce of gold

EUR/USD

The price of 1 euro

Leverage trading

Leverage allows you to open large deals with a relatively small investment.How large? Up to 400 times your initial investment, depending on the instrument you trade.

This means that with a $500 investment you can open trades worth up to $200,000.

Keep in mind that while leverage increases your trading power, it also increases risk to your investment, so be sure to use with sufficient knowledge and training.

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